Judging Microsoft for a Buy

By

Paul Price

| Mar 28, 2014 | 2:00 PM EDT

It feels exciting when a stock breaks out of a long-term base and starts moving strongly upwards. When the company is a world leader and pays a decent yield, the temptation to jump in can be overwhelming.

Microsoft's (MSFT) shares were stuck in neutral for more than three years if you bought in at 2010's high of $31.60. Earnings picked up from $2.10 to $2.65 during that period but the stock went sideways as the price-to-earnings ratio compressed from 15.0x to 12.1x....274 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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